Hi Damien, The OP has not been around since April, so I will answer your question.Hello, thank you for setting up this thread.
Wat is your experience of buying EXW, rather than FOB? Is there anything I need to watch out for?
I have dealt with this matter in my AMA, but not in detail. Here is what I wrote on July 6: "Regarding FOB quotes, it is common in China for that term to be incorrectly used. In practice a supplier will often mean Ex Works (EXW), so you need to know where the FOB begins. It should be at the port (air port or sea port) of loading. If it is EXW there can be massive internal charges from the supplier's dock to the point where it is loaded on overseas transport. Never accept an EXW quote unless your freight forwarder advises you to do so."
The internal charges I refer to should have read inland charges. These can include: loading charges at their factory, document preparation fees, export license fee, freight to an airport or sea port, road tolls, Chinese Customs charges and maybe some other charges that they are busy dreaming up right now. Risk of loss of cargo is also your responsibility once it leaves the factory.
When buying on an FOB basis, most of those charges could still apply if they quote FOB works or factory. If they quote FOB at a specified port that means all charges and loss of cargo are their responsibility until the goods are loaded on board the aircraft or ship.
Regards,
Walter
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